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Nifty 50 recovers some losses on dovish Powell, but it's not out of the woods just yet
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Key Takeaways (30s Read)
Nifty 50 recovers above 25,900 as dovish Powell boosts risk sentiment, short-term bias turns bullish.
Overview of Nifty 50 Technical Analysis
Nifty 50 has shown a strong recovery since Thursday's open, boosted by dovish remarks from Fed Chair Powell and optimistic views on US-India trade talks. Currently, as the index trades above the significant level of 25,900, this level, if broken, could shift the short-term bias to bullish. Should the price rally towards the all-time high, sellers may step in at that level, targeting a drop to 25,317.Shift in Short-term Bias
The 1-hour chart reveals aggressive buying since Thursday's open. After breaking above the key level of 25,900, the short-term bias clearly leans bullish. A pullback from the trendline may attract buyers aiming for new highs. Conversely, a break below 25,900 could lead sellers to target new lows.Upcoming Economic Catalysts
Today's Indian inflation data and next week's US Non-Farm Payroll (NFP) and Consumer Price Index (CPI) reports are critical. The outcomes of these data points could significantly influence market sentiment and the Nifty 50's performance.AI Analyst
AI Opinion
"Chair Powell's dovish tone has provided a positive impetus for Nifty 50. The market seems to find comfort in Powell downplaying inflation risks while emphasizing labor market weaknesses. This context allows for a recovery around the 25,900 level, which could serve as a springboard for further upward movements. However, attention must be paid to next week's US economic indicators, as stronger-than-expected data may reverse the dovish sentiment and negatively impact risk appetite."
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